Comment: Sajjan Jindal

Striking a balance between growth and inflation

The finance minister has struck a fine balance between growth and inflation and has also given a strong indication of continuing on the reform path.

FM has resisted the temptation to increase the excise duty thereby giving out positive signals to the industry. The re-assurance on the fiscal deficit trend as well as revenue deficit will go a long way in creating a positive frame of mind.

By significantly increasing the allocation for the social sector, the FM has taken due cognizance of the growth potential of the Indian rural market and its integration with the urban economy.

The budget also gives a further boost for attracting FDI as well as allowing FIIs to invest in MF schemes. The divestment in PSU’s will continue and a target of Rs.40,000 crore with 51 per cent presence of the Government is a very positive signal.

 

The hike on export duty on iron ore fines and lumps to 20 per cent advalorem is most welcome. I am sure that this will lead to greater value addition at home and encourage the domestic steel industry.

By forming a task force of Group of Ministers for addressing the issues of corruption, state funding of elections, transparency in public procurement and contracts, the FM has shown the courage to tackle the root cause of the malaise of black money.

The general direction of the budget is good. The Government’s move towards a direct transfer of cash subsidy to people living below the poverty line on Kerosene and Fertilizer will pave the way for a new era in governance.

The budget has the stamp of fiscal prudence written all over it and one can expect that it will tackle the problem of inflation while targeting growth and heralding reforms.

Sajjan Jindal
Vice Chairman & MD, JSW Steel Ltd